Universal need for safe water drives disinfection product demand Worldwide demand for water disinfection products is projected to grow more than 7% annually through 2014. Growth will be driven by a combination of factors, including recovery from the recent global economic downturn. But across the board, demand for water disinfection products will be boosted by the ubiquitous need for safe, clean water. UV, ozone and other nonchemical technologies are expected to register the fastest advances, although gains for chlorine and other chemicals will be appreciable -- especially in developing areas.

Developed world focuses on environmental impact Although the need for water is universal, the problems confronted in meeting that need vary widely around the world. In many of the world’s most affluent countries, access to water is rarely an issue. However, even in Western Europe, wastewater treatment rates and standards continue to improve as part of an effort to reuse more water and to minimize the effects of wastewater discharges on the environment.

In other developed countries, traditional disinfection methods themselves have created challenges for water treatment operators. Regulations developed in the US and elsewhere to reduce the threats posed by disinfection byproducts have changed treatment techniques, and created opportunities for products such as chloramines, UV and ozone.

In developing areas, expanding access is priority In the world’s least developed countries, growth for disinfection products will be tied mainly to ongoing efforts to expand access to safe water and basic sanitation facilities. Numerous countries have dramatically improved access to water (Vietnam, Georgia, Ghana) and sanitation (Angola, Cambodia, Mali). Even so, almost 40 percent of the world’s population lacks access to even the most rudimentary sanitation systems. And up to a billion people are without a nearby supply of safe water. Disinfection products -- including both chemicals and equipment -- will be instrumental in reducing these numbers, and with them, the number of unnecessary deaths caused by waterborne diseases.

Chlorine is king, but new greener technologies will grow rapidly In terms of the volume of water disinfected in the world, chlorine is still king, and will remain so. Its low cost and unmatched efficacy make it the right choice for high-volume disinfection applications -- especially when a disinfectant residual is needed. Chlorine derivatives are sometimes preferred because they are easier to handle in certain settings, such as in smaller water systems or in swimming pools and spas.

Going forward, though, newer nonchemical technologies are expected to register faster growth, in part because many of these approaches are greener alternatives to products such as chlorine gas or bleach. Ozone offers the favorable attributes of degrading into safe compounds. UV treatment is usually employed in dual disinfection systems that reduce overall chemical usage while still delivering water that is safe and within regulatory compliance. Research also continues on a number of other novel treatment techniques, such as the use of modified titanium dioxide in a photocatalytic disinfection process.

Global Demand for Water Disinfection Products to Exceed $8 Billion in 2014

World demand for water disinfection products is projected to increase 7.5 percent annually to more than $8 billion in 2014. Gains will be healthy in essentially every region, although the underlying reasons for these increases will vary between the world’s most advanced regions and developing areas. Traditional chemical disinfection technologies will account for a majority of overall demand, but onsite chemical generation and nonchemical disinfection techniques are expected to register faster growth. These and other trends are presented in World Water Disinfection Products, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.

In the developed world, gains will be prompted by efforts to reduce the environmental impact of water disinfection. Traditional disinfection can lead to the formation of disinfection byproducts (DBPs) such as trihalomethanes and haloacetic acids. Also, greater emphasis will be placed on more responsible wastewater treatment practices. In developing areas such as the rapidly industrializing economies in Asia and newer members of the European Union (EU) in Eastern Europe, efforts are underway to draw water treatment rates and quality into line with more advanced regional neighbors, such as Japan and the western EU member states, respectively. In the world’s least developed regions, including much of South Asia and most of sub-Saharan Africa, growth for water disinfection products will be based mainly on extension of access to water supplies in areas where no previous access had existed.

Chemicals will continue to account for the majority of overall demand for disinfection products. Chlorine is still the most widely used technology in the world because it is readily available, inexpensive and very effective, although there are concerns about handling the chemical and the DBPs produced by its use. The industrial segment, especially in developed areas, will remain dominated by specialty biocides, including a variety of bromine-based compounds. Disinfection equipment is expected to register faster growth than chemicals through the forecast period. Ultraviolet (UV) technologies are becoming more widely used, beyond their original main niche in wastewater disinfection. Ozone, chemical generation equipment and other niche products are also expected to register strong growth.

INTRODUCTION

I. EXECUTIVE SUMMARY

II. MARKET ENVIRONMENT

General

World Economic Overview

Recent Historical Trends

Macroeconomic Outlook

World Gross Fixed Capital Formation

World Personal Consumption Expenditures

World Demographic Outlook

Population

Urbanization Patterns

World Water Use

World Manufacturing Outlook

World Electricity Generation

Environmental & Regulatory Issues

Water Pollution

Regulations

Waterborne Diseases

Technology & Product Innovation

International Trade

III. OVERVIEW

General

Usage Patterns

Products

Chemicals

Chlorine

Chlorine Derivatives

Bromine Derivatives

Other

Equipment

Ultraviolet (UV) Equipment

Chemical Generation Equipment

Ozone Equipment

Other

Markets

Industrial

Recreational

Municipal

Supply Water

Wastewater

IV. NORTH AMERICA

General

United States

Canada

Mexico

V. WESTERN EUROPE

General

Belgium

France

Germany

Italy

Netherlands

Spain

Sweden

United Kingdom

Other Western Europe

VI. ASIA/PACIFIC

General

Australia

China

India

Indonesia

Japan

South Korea

Taiwan

Other Asia/Pacific

VII. OTHER REGIONS

Central & South America

Brazil

Other Central & South America

Eastern Europe

Russia

Other Eastern Europe

Africa/Mideast

VIII. INDUSTRY STRUCTURE

General

Market Share

Industry Restructuring

Competitive Strategies

Research & Development

Low-Cost Position

Focus Strategies

Cooperative Agreements

Marketing & Distribution

Company Profiles

Advantis Technologies, see Arch Chemicals

ALTIVIA Corporation

Aquafine, see Danaher

Arch Chemicals Incorporated

Ashland Incorporated

BASF SE

Bio-Lab, see Chemtura

Buckman Laboratories International Incorporated

BWT AG

Calgon Carbon Corporation

Carbocloro Industrias Quimicas, see Occidental Petroleum

ChemTreat, see Danaher

Chemtura Corporation

China National BlueStar Group Company Limited

Christ Water Technology, see GLV

Christ-Nishotech Water Systems Private, see BWT

Ciba Holding, see BASF

Clearon, see Israel Chemicals

Danaher Corporation

Dow Chemical Company

Ebara Corporation

GE Water & Process Technologies, see General Electric

General Electric Company

GLV Incorporated

HTH Water Products, see Arch Chemicals

Israel Chemicals Limited

ITT Corporation

Kemira Oyj

Kurita Water Industries Limited

Medentech, see Israel Chemicals

Nalco Holding Company

Occidental Petroleum Corporation

Ovivo, see GLV

OxyChem, see Occidental Petroleum

Permo, see BWT

Rohm and Haas, see Dow Chemical

Severn Trent plc

Shanghai Duojia Water Treatment Science & Technology Corporation

Shenyang Chemical Industry, see China National BlueStar Group

Siemens AG

Solvay SA

Trojan Technologies, see Danaher

Veolia Environnement SA

VIQUA, see Danaher

Other Companies Mentioned in Study

LIST OF TABLES

SECTION I -- EXECUTIVE SUMMARY

Summary Table

SECTION II -- MARKET ENVIRONMENT

1 World Gross Domestic Product by Region

2 World Gross Fixed Capital Formation by Region

3 World Personal Consumption Expenditures by Region

4 World Population by Region

5 World Urban Population by Region

6 World Nonagricultural Water Use by Region

7 World Manufacturing Value Added by Region

8 World Electricity Generation by Region

SECTION III -- OVERVIEW

1 World Water Disinfection Product Demand by Region

2 World Water Disinfection Product Demand by Type

3 World Water Disinfection Chemical Demand by Type

4 World Water Disinfection Chlorine Demand by Region

5 World Water Disinfection Chlorine Derivative Demand by Region

6 World Water Disinfection Bromine Derivative Demand by Region

7 World Demand for Other Water Disinfection Chemicals by Region

8 World Water Disinfection Equipment Demand by Type

9 World Water Disinfection Ultraviolet (UV) Equipment Demand by Region

10 World Water Disinfection Chemical Generation Equipment Demand by Region

11 World Water Disinfection Ozone Equipment Demand by Region

12 World Demand for Other Water Disinfection Equipment by Region

13 World Water Disinfection Product Demand by Market

14 World Industrial Market for Water Disinfection Products by Region

15 World Recreational Market for Water Disinfection Products by Region

16 World Municipal Water Disinfection Market by Segment

17 World Municipal Supply Water Market for Disinfection Products by Region

18 World Municipal Wastewater Market for Disinfection Products by Region

SECTION IV -- NORTH AMERICA

1 North America: Market Environment for Water Disinfection Products

2 North America: Water Disinfection Product Demand by Type Market

3 United States: Market Environment for Water Disinfection Products

4 United States: Water Disinfection Product Demand by Type

5 United States: Water Disinfection Markets

6 Canada: Market Environment for Water Disinfection Products

7 Canada: Water Disinfection Product Demand by Type

8 Canada: Water Disinfection Markets

9 Mexico: Market Environment for Water Disinfection Products

10 Mexico: Water Disinfection Product Demand by Type

11 Mexico: Water Disinfection Markets

SECTION V -- WESTERN EUROPE

1 Western Europe: Market Environment for Water Disinfection Products

2 Western Europe: Water Disinfection Product Demand by Type & Market

3 Belgium: Market Environment for Water Disinfection Products

4 Belgium: Water Disinfection Product Demand by Type

5 Belgium: Water Disinfection Markets

6 France: Market Environment for Water Disinfection Products

7 France: Water Disinfection Product Demand by Type

8 France: Water Disinfection Markets

9 Germany: Market Environment for Water Disinfection Products

10 Germany: Water Disinfection Product Demand by Type

11 Germany: Water Disinfection Markets

12 Italy: Market Environment for Water Disinfection Products

13 Italy: Water Disinfection Product Demand by Type

14 Italy: Water Disinfection Markets

15 Netherlands: Market Environment for Water Disinfection Products

16 Netherlands: Water Disinfection Product Demand by Type

17 Netherlands: Water Disinfection Markets

18 Spain: Market Environment for Water Disinfection Products

19 Spain: Water Disinfection Product Demand by Type

20 Spain: Water Disinfection Markets

21 Sweden: Market Environment for Water Disinfection Products

22 Sweden: Water Disinfection Product Demand by Type

23 Sweden: Water Disinfection Markets

24 United Kingdom: Market Environment for Water Disinfection Products

25 United Kingdom: Water Disinfection Product Demand by Type

26 United Kingdom: Water Disinfection Markets

27 Other Western Europe: Market Environment for Water Disinfection Products

28 Other Western Europe: Water Disinfection Product Demand by Type

29 Other Western Europe: Water Disinfection Markets

SECTION VI -- ASIA/PACIFIC

1 Asia/Pacific: Market Environment for Water Disinfection Products

2 Asia/Pacific: Water Disinfection Product Demand by Type & Market

3 Australia: Market Environment for Water Disinfection Products

4 Australia: Water Disinfection Product Demand by Type

5 Australia: Water Disinfection Markets

6 China: Market Environment for Water Disinfection Products

7 China: Water Disinfection Product Demand by Type

8 China: Water Disinfection Markets

9 India: Market Environment for Water Disinfection Products

10 India: Water Disinfection Product Demand by Type

11 India: Water Disinfection Markets

12 Indonesia: Market Environment for Water Disinfection Products

13 Indonesia: Water Disinfection Product Demand by Type

14 Indonesia: Water Disinfection Markets

15 Japan: Market Environment for Water Disinfection Products

16 Japan: Water Disinfection Product Demand by Type

17 Japan: Water Disinfection Markets

18 South Korea: Market Environment for Water Disinfection Products

19 South Korea: Water Disinfection Product Demand by Type

20 South Korea: Water Disinfection Markets

21 Taiwan: Market Environment for Water Disinfection Products

22 Taiwan: Water Disinfection Product Demand by Type

23 Taiwan: Water Disinfection Markets

24 Other Asia/Pacific: Market Environment for Water Disinfection Products